Markets Slip After Two-Day Rally; Nifty Falls Below 26,100 and Sensex Drops 401 Points

Markets Snap Two-Day Gains as Global Selloff Pulls Nifty Below 26,100 and Sensex Sheds 401 Points

Index	Price	Change	% Chg
Nifty 50	26,068.15	124.00	-0.47%
Nifty Bank	58,867.70	480.00	-0.81%
Nifty Financial	27,566.15	295.20	-1.06%
BSE SENSEX	85,231.92	400.76	-0.47%

Indian equity markets retreated on Friday, halting a two-day winning streak, as global risk sentiment weakened sharply following inconclusive US jobs data and heightened uncertainty over the Federal Reserve’s interest-rate path. Despite hovering near record highs earlier in the week, domestic benchmarks succumbed to broad-based selling, reflecting the cautious mood across global markets.

By the closing bell, the Nifty 50 ended at 26,068.15, down 0.47%, slipping below the crucial 26,100 mark, while the Sensex declined 400.76 points, or 0.47%, to settle at 85,231.92. The Bank Nifty, which had recently scaled fresh record highs, saw sharper cuts, closing 0.81% lower at 58,867.70.

Markets Open Weak and Extend Losses Despite Mid-Session Buying

Tracking global cues, Indian indices opened lower and remained under pressure throughout the day. Although a brief round of mid-session buying attempted to lift sentiment, markets ultimately closed near the day’s low levels, indicating weak risk appetite.

For the week, however, the major benchmarks still ended with gains—the Sensex rose 0.8% and the Nifty added 0.6%, reflecting the strength seen earlier in the week.

Broader markets underperformed, with the BSE Midcap and Smallcap indices slipping 1.3% each, showcasing deeper selling in the broader universe of stocks.

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Sectoral Weakness Dominates as Most Indices End in the Red

Sectoral performance painted a weak picture across the board. Except for FMCG, which managed to eke out a small gain of 0.14%, all major sectoral indices ended lower.

Top sectoral losers included:

• Metal: –2.34%

• Realty: –1.86%

• Media: –0.78%

• Consumer Durables: –0.75%

• Oil & Gas: –0.53%

Banks, financials, energy, midcaps, and chemicals also saw sustained selling pressure. Autos were the only pocket showing some resilience, bucking the trend of broader market softness.

Volatility Jumps as India VIX Surges Over 12%

Reflecting the nervousness among traders, India VIX, the volatility index, climbed 12.31% to 13.63, marking a noticeable uptick in market uncertainty. Rising volatility typically signals heightened fear of near-term swings—and traders appear to be positioning defensively ahead of key global macro events.

Market breadth remained weak, with 784 advancers against 2,305 decliners, reinforcing the extent of selling pressure across the board. Meanwhile, 42 stocks hit new 52-week highs, while 182 stocks touched fresh 52-week lows, pointing to sharp divergence and stock-specific volatility.

Adani Group Exits Adani Wilmar Completely Through Block Trade

In a significant corporate development, the Adani Group fully exited Adani Wilmar, offloading its remaining stake via a large block trade absorbed by major domestic and international investors. With this exit, Wilmar International becomes the sole promoter, marking a shift in control and setting the stage for Adani Wilmar’s next phase as a fully MNC-led enterprise.

Stock-Specific Moves Trigger Sharp Reactions Across the Market

A variety of company announcements and news flows triggered notable stock moves on Friday:

Major losers included:

• Hindalco: –2.81% after a fire incident at Novelis’ Oswego plant in the US

• JSW Steel: –2.91%

• Tata Steel: –2.59%

• Bajaj Finance: –2.29%

• HCL Tech: –2.22%

Other notable developments:

• Max Financial fell 2% post block deal

• Kotak Mahindra Bank ended marginally lower following its 1:5 stock split

• JSW Energy dropped 4% after approval of insolvency resolution for Raigarh Champa Rail Infra

• Sealmatic India surged 9% as the stock traded ex-bonus

• M&M added nearly 1% after CLSA retained its ‘outperform’ rating

• IndusInd Bank rose 2% on denying reports of a capital raise

More than 80 stocks reached new 52-week highs, including Bharti Airtel, Reliance Industries, SBI Life, Eicher Motors, GMR Airports and M&M Financial. Meanwhile, over 220 stocks slipped to new 52-week lows, including Thermax, Bata India, Clean Science, Sheela Foam, Deepak Nitrite and United Breweries.

Technical View: Nifty Fails to Hold Above Key 26,100 Resistance Zone

On the technical front, the Nifty failed to build on its previous breakout above the strong resistance zone of 26,100, signalling a lack of follow-through buying.

The RSI continues to hold above 60, indicating underlying bullish momentum despite cooling off. The MACD histogram continues to rise, showing improving momentum and suggesting dips may still attract buying interest.

Key levels to watch:

• Resistance: 26,200–26,250

• Upside target: Potential move toward 26,500 if resistance is taken out

• Support: 25,900–25,850 zone expected to cushion declines

Rupee Sees Sharpest Single-Day Fall in Three Months, Breaches 89/USD

The Indian rupee witnessed its steepest single-day decline in over three months, tumbling 78 paise to trade at 89.46 per US dollar during intraday deals. This is the first time the rupee breached the 89/USD mark, pressured by weak domestic equity sentiment, a strong US dollar, and risk-off global cues.

The sharp fall reflects concerns about foreign fund outflows as global markets struggle with mixed US data and reduced expectations of near-term Fed rate cuts.

Global Markets Mirror the Risk-Off Sentiment

Global cues remained deeply negative, weighing heavily on Indian equities:

• Stoxx Europe 600: –1%

• MSCI Asia Pacific Index: –1.8%

• MSCI Emerging Markets Index: –2.5%

• S&P 500 futures: +0.2%

• Nasdaq 100 futures: flat

• Dow futures: little changed

The mixed performance of US futures provided little comfort as Asian and European markets extended losses amid fears of slower global growth.

Capillary Technologies Makes Weak Debut but Closes in Green

Newly listed Capillary Technologies made a subdued market debut, listing at a 3% discount at Rs 560 on the BSE. However, the stock recovered smartly during the session and closed 5% higher at Rs 606.90, reflecting underlying investor interest despite a weak broader market.

F&O Ban List Sees Fresh Additions and Potential Entrants

The F&O ban list saw SAMMAANCAP and SAIL remaining under restrictions based on their latest MWPL readings. Several counters, including Bandhan Bank, HFCL, Amber, IRCTC, RBL Bank, Biocon, LIC Housing Finance, and IEX, are nearing the ban threshold and may be added soon depending on derivative activity.

Market Outlook: Consolidation Likely as Investors Eye Global Data and Volatility

With volatility rising and global signals mixed, analysts expect markets to remain sideways to slightly weak in the near term. Investors will closely track incoming macroeconomic data, global central bank commentary, and FII flows.

While the long-term structure of Indian markets remains strong, the failure to hold key levels like 26,100 suggests that the Nifty may remain range-bound until clarity emerges on global rate trajectories and domestic earnings.

• Nifty 50
• Bank Nifty
• Sensex

FAQs Global Selloff Pulls Nifty Below 26,100 and Sensex Sheds 401 Points

Why did the Indian stock market snap its two-day gaining streak despite strong domestic fundamentals?

The Indian market reversed its two-day rally due to weak global cues, especially a selloff in US and Asian markets triggered by uncertain Federal Reserve rate-cut expectations. Although domestic fundamentals remain resilient, investors reacted defensively to mixed US economic data, rising volatility, and profit booking at higher levels.

What does Nifty slipping below 26,100 indicate for short-term market sentiment and technical outlook?

Nifty falling below the 26,100 resistance zone indicates weak follow-through buying and increased caution among traders. Technical indicators such as RSI above 60 and a strengthening MACD suggest underlying momentum remains intact, but the index must reclaim 26,200–26,250 to resume its upward trend.

Why did India VIX rise sharply even though benchmark indices were only moderately lower?

India VIX surged over 12% because market participants expect heightened intraday volatility amid global uncertainty, a falling rupee, and weak sectoral breadth. Even mild declines in the Nifty can trigger sharp jumps in the VIX when traders hedge aggressively ahead of macroeconomic events or policy announcements.

How are global cues influencing Indian equity markets and sector-wide weakness today?

A combination of falling global indices—such as declines in the Stoxx Europe 600, MSCI Asia Pacific, and MSCI Emerging Markets—along with mixed US futures contributed to broad-based selling in India. Global risk-off sentiment spilled into domestic banking, metal, realty, and financial stocks, pulling down the Indian market despite strong weekly gains.

Why did the rupee breach the 89 per USD mark, and what does it mean for investors?

The rupee’s steep fall past the 89/USD mark was driven by risk aversion, strong dollar demand, and outflows from emerging markets. For investors, a weaker rupee often impacts sectors with high import dependence, increases inflationary pressures, and affects FPI sentiment, thereby influencing equity valuations in the short term.

What do today’s top gainers and top losers reveal about market positioning and sector rotation?

The contrast between FMCG as the only gainer and sharp declines in metals, realty, and financials indicates a defensive shift in market positioning. Investors are prioritising sectors with stable earnings visibility while reducing exposure to cyclicals, rate-sensitive stocks, and globally linked commodities amid rising uncertainty.

How should traders interpret the F&O ban list changes and nearing entrants for tomorrow’s trading session?

Rising MWPL percentages and more stocks nearing the F&O ban list signal increased derivative activity, often linked to speculative positions or heavy short-term trading. Traders should monitor these counters closely since ban-listed stocks can experience higher volatility, restricted positions, and sudden price swings when participants unwind leveraged trades.